The prices of Maruti Suzuki India and Hero MotoCorp Ltd. vehicles will increase from April 1. The companies said the increase in vehicle prices was due to a clear rise in the prices of steel, copper and crude oil in the international market. Hero MotoCorp, the country’s largest two-wheeler maker, had lifted vehicle prices in January to control rising input costs. India’s largest passenger car maker, Maruti Suzuki India, had hiked prices in January. The company management has decided to increase the prices of vehicles if the prices of raw materials continue to rise. With the announcement of Maruti and Hero, other cars and two-wheeler makers are also likely to declare price hikes.
The updated ex-showroom prices will come into effect from April 1. Hero said there will be a raise of Rs 2,500 across the two-wheeler range. But the companies have made it clear that prices can vary based on the model and the particular market. Still, despite double-digit growth in taxation and net profit in the third quarter of the current financial, sector analysts expect automakers’ operating profit and margins to decline in the next quarter and fiscal.
As per the expert’s opinion, the company would find it difficult to balance the impact of rising commodity prices and other costs. Rising petrol prices may also significantly affect sales in the coming months. Experts also say that sales are likely to pull up in the next financial year.